Can Buildingstars deduct authorized insurance payments from payments collected from customers?

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars is authorized to deduct certain fees and payments from the payments they collect from customers on behalf of the franchisee. Specifically, Buildingstars can deduct fees outlined in Sections III and IV of the Franchise Agreement, any other amounts owed to Buildingstars, authorized insurance payments, and any out-of-pocket costs incurred by Buildingstars while enforcing customer payment, including attorney's fees and court costs. Buildingstars will then disburse the remaining amount to the franchisee according to the procedures detailed in the Confidential Operations Manual.

This arrangement means that a Buildingstars franchisee will not directly handle collections from customers. Instead, Buildingstars manages the billing and collection process and then distributes the appropriate amount to the franchisee after deducting fees and other applicable costs. This can simplify the franchisee's administrative tasks but also means they rely on Buildingstars to accurately manage and remit payments.

It is important for a prospective Buildingstars franchisee to carefully review Sections III and IV of the Franchise Agreement to fully understand what fees and amounts can be deducted from customer payments. Understanding these deductions is crucial for accurately forecasting potential revenue and profitability. Additionally, franchisees should familiarize themselves with the procedures outlined in the Confidential Operations Manual to understand how disbursements are handled.